Is Germany’s Energy Transition a case of successful Green Industrial Policy? Contrasting wind and solar PV

Anna Pegels () and Wilfried Lütkenhorst

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we address the challenge of Germany’s energy transition (Energiewende) as the centrepiece of the country’s green industrial policy. In addition to contributing to global climate change objectives, the Energiewende is intended to create a leading position for German industry in renewable energy technologies, boost innovative capabilities and create employment opportunities in future growth markets at the least possible cost. The success in reaching these aims, and indeed the future of the entire concept, is hotly debated. The paper aims to provide an up-to-date assessment of what has become a fierce controversy by comparing solar photovoltaic (PV) and wind energy along five policy objectives: 1) competitiveness, 2) innovation, 3) job creation, 4) climate change mitigation, and 5) cost. We find mixed evidence that Germany reaches its green industrial policy aims at reasonable costs. Wind energy seems to perform better against all policy objectives, while the solar PV sector has come under intense pressure from international competition. However, this is only a snapshot of current performance, and the long term and systemic perspective required for the energy sector transformation suggests a need for a balanced mix of a variety of clean energy sources.

Keywords: Green industrial policy; renewable energies; Germany (search for similar items in EconPapers)
JEL-codes: O3 O31 O38 Q2 Q42 Q48 Q57 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-ene, nep-env, nep-eur and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (64)

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Journal Article: Is Germany׳s energy transition a case of successful green industrial policy? Contrasting wind and solar PV (2014)
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